IPO Central

Parag Milk Foods IPO

Parag is one of the leading manufacturers and marketers of dairy-based branded foods in India. The company commenced its business in 1992 with collection and distribution of milk and has now developed into a dairy-based branded consumer products company with an integrated business model, manufacturing a diverse range of products including cheese, ghee (clarified butter), fresh milk, whey proteins, paneer, curd, yoghurt, milk owders and dairy based beverages targeting a wide range of consumer groups through several brands. A significant portion of its product range includes long shelf-life food and beverage products that enable it to sell its products to retail and institutional customers across India. The company derives all of its products only from cows’ milk. The company’s aggregate milk processing capacity is 2 million litres per day while its cheese plant has the largest production capacity in India, with a raw cheese production capacity of 40 MT per day.

Parag sells its products – primarily milk, curd products, ghee, paneer, butter, cheese products, UHT milk – under Gowardhan and Go brands while also selling premium cow milk under Pride of Cows brand and flavoured milk under Topp Up name. The company’s main business lines and products are as follows:

• Gross fresh milk accounted for 20.3% of its total revenues for the nine months ended 31 December 2015.

• Ghee, butter and cream accounted for 28.5%

• Cheese/paneer accounted for 18.7%

• UHT (Ultra Heat Treatment) products accounted for 4.8%

• Whey products accounted for 2.9%

• Skimmed milk powder and dairy whitener accounted for 10.1%

• Other products such as curd, fruit yoghurt, gulab jamun mix, and flavoured milk accounted for 4.9%

Parag’s manufacturing facilities are strategically located at Manchar in the Pune district of Maharashtra and Palamaner in the Chittoor district of Andhra Pradesh with milk processing capacities of 1.2 million litres per day and 0.8 million litres per day, respectively.

Its institutional customers include restaurant and cafe chains such as Yum! Restaurants (India) Private Limited (for Pizza Hut, Taco Bell and KFC), Jubilant Foodworks Limited (for Domino‘s Pizza) and Sankalp Recreation Private Limited (for Sam‘s Pizza).

Parag Milk Promoters – Devendra Shah, Pritam Shah and Parag Shah